What is merchant underwriting? How providers decide to let you take card payments
By SendPay Business · · 2 min read
Before a business can take card payments, the payment provider checks it. This is called underwriting. The provider is taking on risk, because if customers claim their money back and the business can't pay, the provider may be left covering the loss.
What providers look at
- Who owns and runs the business, and their identity.
- What you sell, and whether it is on the provider's list of restricted products.
- How you sell: in person, online, by subscription or with long delivery times.
- Expected sales volumes and average payment size.
- Your website, refund policy and terms.
- Past chargeback levels, if you have taken cards before.
Possible outcomes
Most small, simple businesses are approved quickly. Others may be approved with conditions, such as a rolling reserve that holds back part of each payout for a while, a lower limit, or slower payouts. Some businesses are declined and may need a specialist provider.
Getting approved faster
Have ID and company details ready, make sure your website clearly shows what you sell, your prices, contact details and refund policy, and describe your business honestly. Mismatches between what you say and what your website shows are a common cause of delays.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners. Ask us what applies to your type of business before you launch.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How much will a provider hold back?
Work out a rolling reserve and your first month's payouts.
Rolling reserve calculator →What is a merchant account?
The account that lets a business take cards.
What is a merchant account? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.